Milacron (Cincinnati, Ohio-based) CEO Tom Goeke said during the company's webcast presentation on its third quarter 2018 results that since many of the company's strategies were completed in 2018, including low-cost manufacturing facilities in the United States and China, Milacron is "pleased with our results for the third quarter" despite geopolitical disruptions. Despite the geopolitical uncertainty created by the US tariff moves in global end markets, Milacron continued to execute on its long-term growth plan and delivered another solid quarter, including solid sales, continued margin expansion and free cash flow generation.

The company's chief financial officer, Bruce Chalmers, added: "We continue to strengthen our balance sheet through a voluntary repayment of term loans. By the third quarter, we had paid down $75 million of debt and expect to pay down another $25 million in the fourth quarter of 2018."

Based on current market conditions, Milacron expects sales growth of 2 per cent in 2018, including a 1 per cent foreign exchange allowance. Adjusted EBITDA is expected to be in the range of $229 million to $231 million. Free cash flow is expected to be in the range of $80 million to $90 million.

Milacron saw weak orders in every region except North America in the third quarter. In the third quarter of 2018, new orders fell 16.4 percent (or 15.2 percent on a constant currency basis) to $269.6 million from $322.3 million in the same period in 2017. However, orders picked up once the new quarter began, Goeke said. On a constant currency basis, the backlog was down 6 percent. Medical orders rose by double digits, but were offset by weakness in other end markets.

Year-to-date orders fell 4.7 percent (6.5 percent on a constant currency basis) to $93.7 million in the third quarter of 2018 from $983.6 million in the same period in 2017. Year-to-date sales increased 4.1 per cent (or 2.2 per cent on a constant currency basis) to $946.8 million from $999.3 million in the same period last year. Year-to-date sales growth in China and India were both in the double digits. Third-quarter sales were hurt by a single-digit decline in North America. The electronics and medical end markets declined in the single digits in the third quarter, but remain on track for double-digit growth for the year.

Sales in the Melt Delivery and Control segment were $108.8 million for the third quarter of 2018, compared to $108.1 million for the same period last year. Excluding the adverse impact of $1.5 million from currency fluctuations, sales increased 2.0 percent compared to the prior year quarter. Year-to-date sales were $349.4 million, compared with $320.3 million in the year-ago period. Excluding the adverse impact of currency movements of $12.3 million, sales increased 5.2 percent from the year-ago period.

For the third quarter of 2018, sales in the fluid Technologies segment were $32.6 million, an increase of 8.1% over the prior year period. Year-to-date sales for this segment were $982 million, compared to $90.2 million in the same period last year. Excluding the favourable impact of currency movements of US $3.1 million, the increase was 5.4 per cent.

Advanced Plastics Processing Technology (APPT) sales decreased 3.2 percent - $166.9 million in the third quarter compared to $175.9 million in the third quarter of 2017. Year-to-date sales were $499.2 million, compared with $498.8 million in the prior-year period. Excluding the favorable impact of currency movements of $2.3 million, sales were down 0.4 percent from the year-ago period.

After the NPE show, there was a delayed acceleration; However, Chalmers commented that September's orders returned to normal levels and October's look strong , noting that the company is "not seeing a rebound in China."

He also added that many mold makers in China are making molds for the US market and other regions, rather than targeting the local Chinese market. "Many customers have decided to move their mold manufacturing to the US and other regions," he said.

Goeke noted a recovery in all Milacron markets except the Chinese market and the automotive sector.

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